What to expect as Bitcoin, Ethereum and XRP falter?

Cryptocurrency prices are facing a broad correction on Monday, following failed attempts to break through key resistance levels. Bitcoin (BTC) is retreating toward $79,000 at the time of writing, pressured by ongoing profit-taking and persistent macroeconomic headwinds.

Altcoins, including Ethereum (ETH) and Ripple (XRP), are reflecting Bitcoin’s short-term bearish bias. The largest smart contract token, ETH, holds below $2,500 while Ripple (XRP) tests support provided at $1.40.

Despite the headwinds, market sentiment remains strong, as reflected in the Fear & Greed Index, which holds at 71 in the Greed territory on Monday, down only marginally from 73 the day before. This index reinforces appetite for risk assets; hence steady capital inflows.

US-listed crypto ETFs uphold inflows

Bitcoin spot Exchange-Traded Funds (ETFs) extended their bullish streak, with inflows averaging $987 million last week through Friday. This marks the third consecutive week of inflows, reinforcing risk-on sentiment as institutional traders increasingly seek exposure. SoSoValue data shows cumulative inflows averaging $56 billion, with net assets under management at $101 billion.

US-listed Ethereum spot ETFs also recorded their third straight week of inflows, totaling $218 million through Friday. Cumulative inflows stand at roughly $13 billion, with net assets under management at approximately $16 billion. Steady ETF inflows are needed to absorb selling pressure and provide a tailwind to sustain gains.

As for XRP spot ETFs, inflows normalized last week to nearly $19 million through Friday, down from $110 million the week before. SoSoValue data shows eight consecutive weeks of inflows, backing the broader bullish outlook and positive market sentiment. Cumulative inflows stand at $1.68 billion, with net assets under management at $1.48 billion.

Technical Analysis: Bitcoin pressured below $80,000

Bitcoin trades at $79,460, holding a bullish near-term bias as price remains clearly above the major Exponential Moving Averages (EMAs), suggesting an intact primary uptrend despite the recent pullback, while momentum signals are mixed, with the Relative Strength Index (RSI) hovering in bullish territory around 64 on the daily chart and the Moving Average Convergence Divergence (MACD) still negative, hinting at ongoing but moderating corrective pressure within the broader advance.

On the downside, immediate support is defined by the clustered 50-day and 200-day EMAs between roughly $72,100 and $72,800, with the deeper 100-day EMA near $70,300 acting as a more strategic floor if selling extends. With no nearby technical resistance above the spot price on the daily chart, a sustained hold above these moving-average supports keeps the focus on dip-buying rather than a trend reversal, as long as momentum does not continue to deteriorate.

Altcoins technical outlook: Ethereum and XRP wobble amid broader bullish bias

Ethereum trades at $2,491, holding a constructive bullish bias as it extends above the main EMAs. The spot price remains comfortably above the 50-day Exponential Moving Average (EMA) near $2,192 and the 200-day EMA around $2,185, suggesting the broader uptrend remains supported despite a recent loss of upside momentum.

The RSI around 63 stays in positive territory without yet signaling overbought extremes, while the Moving Average Convergence Divergence (MACD) trades in negative territory, hinting that the latest consolidation has softened bullish pressure even as price action stays elevated.

On the downside, initial demand is seen around the 50-day EMA at roughly $2,192, with the 200-day EMA just beneath at about $2,185, forming a nearby support band that could attract dip buyers if ETH pulls back. A deeper retreat would expose the 100-day EMA near $2,095 as the next key floor in the broader structure; failure there would signal a more pronounced corrective phase within the prevailing uptrend.

XRP, meanwhile, retains a constructive near-term bias as price holds above the 200-day EMA at roughly $1.36, while also staying well above the 50-day and 100-day EMAs clustered between $1.25 and $1.24, which together suggest an underlying bullish structure.

However, the Parabolic SAR at about $1.61 and the broader downward resistance trendline projected from $1.70 still sit overhead, hinting that upside momentum may be moderating, a view reinforced by a moderately bullish RSI near 60 and a slightly negative MACD histogram that suggests waning bullish pressure.

Initial support is defined by the 200-day EMA at $1.36, with further demand expected near the 50-day EMA at $1.25 and the 100-day EMA at $1.24 if a deeper correction unfolds. On the topside, bulls would need to clear the Parabolic SAR barrier around $1.61 before challenging the descending trendline resistance near $1.70, a break above which would significantly reinforce the broader bullish outlook.

(The technical analysis of this story was written with the help of an AI tool.Know more.)

Crypto ETF FAQs

An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.

Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.

Yes. The SEC approved in January 2024 the listing and trading of several Bitcoin spot Exchange-Traded Funds, opening the door to institutional capital and mainstream investors to trade the main crypto currency. The decision was hailed by the industry as a game changer.

The main advantage of crypto ETFs is the possibility of gaining exposure to a cryptocurrency without ownership, reducing the risk and cost of holding the asset. Other pros are a lower learning curve and higher security for investors since ETFs take charge of securing the underlying asset holdings. As for the main drawbacks, the main one is that as an investor you can’t have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are higher costs associated with holding crypto since ETFs charge fees for active management. Finally, even though investing in ETFs reduces the risk of holding an asset, price swings in the underlying cryptocurrency are likely to be reflected in the investment vehicle too.

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts.

He enjoys deep dives into emerging Web3 tren

Source: www.fxstreet.com